Correlation Between Malaga Financial and SPACE
Can any of the company-specific risk be diversified away by investing in both Malaga Financial and SPACE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Malaga Financial and SPACE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malaga Financial and SPACE, you can compare the effects of market volatilities on Malaga Financial and SPACE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Malaga Financial with a short position of SPACE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malaga Financial and SPACE.
Diversification Opportunities for Malaga Financial and SPACE
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Malaga and SPACE is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Malaga Financial and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE and Malaga Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Malaga Financial are associated (or correlated) with SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of Malaga Financial i.e., Malaga Financial and SPACE go up and down completely randomly.
Pair Corralation between Malaga Financial and SPACE
Given the investment horizon of 90 days Malaga Financial is expected to generate 8.84 times less return on investment than SPACE. But when comparing it to its historical volatility, Malaga Financial is 9.14 times less risky than SPACE. It trades about 0.04 of its potential returns per unit of risk. SPACE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 43.00 in SPACE on August 23, 2024 and sell it today you would earn a total of 2.00 from holding SPACE or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Malaga Financial vs. SPACE
Performance |
| Timeline |
| Malaga Financial |
| SPACE |
Malaga Financial and SPACE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malaga Financial and SPACE
The main advantage of trading using opposite Malaga Financial and SPACE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malaga Financial position performs unexpectedly, SPACE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SPACE will offset losses from the drop in SPACE's long position.| Malaga Financial vs. Pioneer Floating Rate | Malaga Financial vs. The Gabelli Equity | Malaga Financial vs. Pioneer Municipal High | Malaga Financial vs. Nuveen Global High |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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